Guidance Available From HMRC For New Self Employed Contractors

HMRC have this week issued guidance to new contractors who have registered as self employed. The guidance is aimed at those awaiting their first tax bill from HMRC.

According to HMRC, when a person starts self-employment, they will be waiting for some time before their first tax bill lands on the door mat so they need to consider how much they will be likely to pay and start setting some money aside early to avoid a hefty bill that they cannot afford later.

For this reason, HMRC have released a table to indicate to new contractors and those who are self employed what tax and class 4 NICs might be due for various profit brackets on a weekly and monthly basis. HMRC said that the table should assist new contractors who do not have any other taxable income to work out how much to save for their tax bill when it becomes due.

HMRC have also reminded contractors however that the exact amount of tax and NICs due cannot be confirmed until the earnings have been confirmed to HMRC via the self assessment tax returns.

The table that HMRC have issued as guidance is below.